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Is Personal Loan for Self-Employed Possible With Bad Credit?

A credit score is the numeric representation of the payment history. The history or credit history is the detailed document where every single credit you have taken and how have you paid for it. Loans are both secured and unsecured. But, most of the people opt for unsecured loans as there is no need to submit anything in the form of security. Also, due to this, the loan disbursal is quicker as compared to secured one since there is no legal action involved. Even though both salaried and self-employed earn, not all banks offer loans to both. Salaried people have continuity in a job or have proper income and its proof which serves as an important document based on which lenders offer personal loans. But, self-employed people do not have as much reliability as compared to income and hence there are only a few lenders that provide a personal loan to self-employed. For any loan type, most of the lenders check CIBIL score and credit history. Having a bad history may stop you from getting any loan. However, salaried people still have better chances of getting the loan as they have a regular income. The problem arises with self-employed professionals having bad credit. In this article, we have focused on the not-so-common type of loan – personal loans for self-employed. We will cover the personal loan interest rates, documentation, eligibility (mainly the income), CIBIL score required, and list of banks offering the loan. Personal Loan Interest Rates for Self-employed The interest rates on a personal loan for self-employed is almost similar to that offered to salaried. Personal Loan for Self-employed Eligibility

The applicant should be Resident of India.

The applicant should have the minimum age of 21 years at the time of application, the maximum age should be 60 to 65 years at the time of loan maturity.

The minimum turnover or profit of the applicant should be as per the lender’s requirements.

The minimum work experience in the current business for at least 3 years.

personal loan

CIBIL Score for Personal Loan for Self-employed Be it a salaried person or a self-employed professional, for a personal loan, you have to maintain a minimum CIBIL score of 750. Documents Required for Personal Loan for Self-employed

The duly signed application form.

Passport size photograph.

Proof of ID – Passport/ Voter ID/ PAN Card

Proof of age – Birth certificate/ passport

Proof of residence – Passport/ Utility bill/ Allotment letter.

Proof of income – Latest Income tax return (ITR) along with computation of income, Last 2 years Balance sheet and profit and loss certified by a CA.

List of Banks offering Personal Loan for Self-employed almost all top banks and NBFCs offer personal loan. Those giving it to self-employed professionals/individuals are as follows:

HDFC Bank

ICICI Bank

Bajaj Finserv

Capital First

Fullerton India

How can you apply for a personal loan? The online procedure is very simple. You can visit the official website of the bank and fill in the online loan application form. Once you complete the first step of giving basic details such as name and income, you will know whether you are eligible for the loan or not. As you proceed, you will have to upload documents as per the requirement. On the completion of the full process, the bank executive will contact you regarding the same. After the confirmation, your application will be processed further. With the above details on personal loans for self-employed, you can check other details related to this. The procedure of applying for a personal loan (for self-employed) is similar to that of a salaried person. The only difference is the documents that these two have to submit. So, both these professionals have to make sure that they have all the relevant documents at the time of applying for the loan. Otherwise, lenders might not approve the loan application.